Chapter 2 - Problem Solving
September 21, 2022 | Author: Anonymous | Category: N/A
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Problem 2-2 (IAA) Sensible Company Bank Reconciliaton As of December 31, 2021 Book
Unadjused Balances
Add: Credit Memo for note collected
110,000
Bank
135,000
45,000
Less: Debit Memos
NSF Check Service Charge Se
(10,000) (5,000)
Less: Book Error
(15,000) (27,000)
Add: Deposit in Transit
60,000
Less: Outstanding Check
Check 775
(30,000)
Check 777
(40,000)
Check 770
(20,000)
(90,000)
Add: Bank Error
8,000
Adjused Balances
113,000
Adjustng Enries
Cash in bank Bank Service Charge
45,000 5,000
Notes Receivable
50,000
To record the note collected by the bank.
Accounts Receivable
10,000
Cash in Bank
10,000
To record NSF check.
Accounts Payable
27,000
Cash in Bank To adjust the understatement of book disbursements.
27,000
113,000
PROBLEM 2-1 Apahy Company Bank Reconciliaton As of December 31, 2021 Book
Unadjused balances
Bank
65,000
Add: Credit memo for note collected
30,000
Less: Debit memo for service charge
(2,000)
Deposit in transit
108,000
80,000
Less: Outsanding checks:
No. 102
15,000
No. 105
30,000
No. 107
50,000
Adjused balances
(95,000) 93,000
ADJUSTING ENTRIES:
Cash in bank
Debi 30,000
Notes receivable
Credi
30,000
To record the note collected by bank. Bank service charge Cash in bank To record the bank service charge.
2,000 2,000
93,000
Zodiac Company Bank Reconciliation As of April 30 Cash bal. per book, April 30 Add: Add: Credit Memo for note collected Outstanding Check Check no. 1331 Check no. 1332 Check no. 1334 Check no. 1335 Total: Less: Bank Service Charge NSF Check Deposit in transit
1,100,000 60,000 40,000 30,000 60,000 10,000
5,000 25,000 270,000
Total balance per bank, unadjusted Adjusting Entries Cash in Bank Notes Receivable
60,000
Bank Service Charge Accounts receivable Cash in Bank
5,000 25,000
140,000 1,300,000
-300,000 1,000,000
60,000
30,000
PROBLEM 2-16 Radant Company
3500000
Bank Balance
Add: Deposit in transit
NSF CHECK
Debit Memo for safety deposit box rental fee
Unrecorded check drawn
550000 50000 5000 125000
Less: Outstanding Check
-650000
-270000 -180000
Book error on creditor check (Overstatement) Book error on customer's check (Understatement)
730000 4230000
-1100000
Balance per book Before Correctons
3130000
Balance per book Before Correctons
3130000
Add: Overstatement of creditor's check
270000
Understatement of customer's check
180000 3580000
Less: NSF CHECK
-50000
Debit memo for safety deposit box rental fee Unrecorded check drawn
ADJUSTED BOOK BALANCE
-5000 -125000 3400000
ADJUSTING ENTRIES
Accounts receivable
50000
Cash in Bank
50000
NSF check returned Bank service charge
5000
Cash in bank Safety box rental fee Cash in Bank
5000
270000
Accounts payable
270000
To correct the book error of overstang the creditor's check Cash in Bank
180000
Accounts receivable
180000
To correct the book error of understang the customer's check Accounts payable
125000
Cash in Bank Unrecorded check drawn for accounts payable
125000
PROBLEM 2-8
Alpha Company Bank Reconciliation As of December 31, 2021 Balance per book
5,000,000.00
Add: Total Le Less ss::
516,000.00 5,516,000.00
Proceeds of bank loan Under Underst stat atem emen entt of ch chec eck k (200, (200,00 0000-20 20,0 ,000) 00) Petty cash fund
18 180, 0,000 000.0 .00 0 10,000.00
190,000.00
Adjusted book balance
5,326,000.00
Balance per bank Add: Deposits in Transit Bank Error (erroneous bank charge) Deposit omitted from bank statement Total
5,500,000.00 300,000.00 50,000.00 150,000.00
Less:
130,000.00 544,000.00
Bank Error (erroneous bank credit) Outstanding checks Adjusted bank balance
Adjusting Entries Cash in Bank Interest Expense (84,000 x 1/12) Prepaid Interest Expense Accounts Payable Petty cash fund Supplies Transportation Postage Loan Payable (516,000/86%)
500,000.00 6,000,000.00 674,000.00 5,326,000.00
326,000.00 7,000.00 77,000.00 180,000.00 4,000.00 2,000.00 3,000.00 1,000.00 600,000.00
PROBLEM 2-9 PATHETIC COMPANY BANK RECONCILIATION AS OF AUGUST 31, 2021
Book Unadjused balance
Bank
1,300,00 1,300, 000 0 1,20 1,200, 0,00 000 0
Add: Overstatement of Check No. 765
20,000
Check No. 555 stopped for payment
10,000
Total
30,000 1,330,000
Less: Bank Service Charge
-5,000
NSF Check
-85,000
Add: Deposit in Transit
275,000
Total Less:
1,475,000
Outstanding checks No. 761
-55,000
No. 762
-40,000
No.763
-25,000
No. 764
-65,000
No.765
-50,000
Adjusted Balances
-235,000 1,240,000 1 1,,240,000
ADJUSTING ENTRIES Cash in Bank
30,000
Accounts Payable Miscellaneous Income
20,000 10,000
# Bank Service Charge
5,000
Accounts Receivable
85,000
Cash in Bank
90,000
# Receivable from Cashier
40,000
Accounts Receivable
30,000
Sales Discount
10,000
Balance per bank
1 805 000
Deposit in transit
325 000 2 130 000
Outstanding check
(275 000)
Adjusted bank balance
1 855 000
Problem 2-11 What amount should should be reported as cash in bank at year end?
Balance per book
850,000
Less: NSF checks
100,000
Add: N No otes collected by bank
750,000
Adjused cash balance
1,500,000 A
PROBLEM 2-13: ABLE COMPANY BOOK TO BANK February 28 Book Balance Note Collected by Bank Interest earned on note
Outstanding Checks NSF Customer Check Bank Service Charge (2000 + 3000) Deposit in Transit Bank Error - Erroneous Charge Cash Balance per Bank, unadjusted
What is the cash balance per bank statement ? A B C D
1,435,000.00 1,530,000.00 1,340,000.00 1,550,000.00
B
1,460,000.00 100,000.00 10,000.00 200,000.00 (130,000.00)
(5,000.00) (85,000.00) (20,000.00) 1,530,000.00
February 28 Book Balance Note Collected by Bank Interest earned on note NSF Customer Check Bank Service Charge (2000 Adjusted Book Balance Bank Balance Deposit in Transit Erroneous Bank Credit Outstanding Checks Adjusted Bank Balance
1,460,000.00 100,000.00 10,000.00 (130,000.00) (5,000.00)
+ 5000)
1,435,000.00
1,530,000.00 85,000.00 20,000.00 (200,000.00) 1,435,000.00
Book Reconciling Items Bank Service Charges
15,000.00
NSF check
40,000.00
Bank Reconciling Items Deposit in Transit
130,000.00
Outstanding Check
100,000.00
Cash in Bank Unadjusted Balance Unrecor Unr ecorded ded custom customers ers che check ck Adjused Balance (a)
920,000.00 Bank Service Charge 35, 35,000. 000.00 00 Custom Customer' er'ss NSF Check Check 900,000.00
15,000.00 40,000 40,000.00 .00
Balance per bank statement December 31 Bank service charge for December
2,800,000 12,000
Interest paid by bank to Sapphire Company for December
-10,000
Deposits made but not yet recorded by the bank
350,000
Checks wrien but not yet recorded by the bank
-650,000
Check recording error (64,000 - 46,000) Cash balance per ledger on December 31
18,000 2,520,000 B.
BOOK
Unadjusted Balance Add: Proceeds of bank loan
500,000
Customer’s note collected by bank
435,000
Less: Debit memo for service charge
(5,000)
NSF Check
(50,000)) (50,000
Add: Deposit in transit
450,000
Bank error (Erroneous deduction)
180,000
BANK
2,120,000
3,070,000
935,000 (55,00 (55,000) 0)
630,000
(200,000 - 20,000)
Less: Outstanding Checks
(700,000)
(750,000 - 50,000)
Adjusted balance
3,000,000
3,000,000
Unadjusted cash balance per bank
8,000,000
Deposit in Transit
1,200,000
Outstanding Check Erroneous bank credit
(1,300,000) (150,000)
Adjused Cash balance per bank
7,750,000 A
Unadjusted cash balance per bank
8,000,000
Deposit in Transit
1,200,000
Outstanding check
(1,300,000)
Erroneous bank credit Note Collected by bank Bank service charge NSF check Book error-overstated payment
(150,000) (1,100,000) 20,000 500,000 (100,000)
Unadjused cash balance per book
7,070,000 A.
Adjusted Cash balance per bank
7,750,000
Currency and Coins on hand Pey Cash Fund Toal Cash
900,000 50,000 8,700,000 A.
Problem 2-19 Bank Balance, July 1 Deposits Check processed Service Charge
550,000 1,800,000 -1,400,000 -30,000
NSF Check
-120,000
Auto-debit arrangement
-100,000
Unadjused bank balance, July 31
700,000 A A..
Unadjusted Balance per bank, 7/31
700,000
DIT
100,000
OC
-150,000
Bank Error
270,000
Cash in bank, adjusted, per bank
920,00 920 ,000 0 B.
Bank Balance, adjusted
920,000
Service charge NSF check
30,000 120,000
Auto-debit arrangement Book error (understated receipts)
100,000 -180,000
Cash in bank balance per ledger
990,00 990 ,000 0 C.
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